EU representatives drew up the three-page draft document this week in Brussels, calling for blocking all investment in Russia's oil companies unless Russian troops are removed from Ukraine. The final sanctions list will be voted on Friday.
Natural resources -- primarily oil -- are Russia's largest export and source of foreign capital. The sanctions will burden the Russian economy at a time the ruble is at a record low, with one U.S. dollar buying 37.34 rubles Wednesday.
The draft document also calls for a potential loss of Russian prestige, suggesting that "beside economic measures, thought could be given to taking coordinated action within the G7 and beyond to recommend suspension of Russian participation in high profile international cultural, economic or sports events," mentioning Formula One auto races, and UEFA and World Cup soccer tournaments. The World Cup, the subject of global interest, is scheduled to be held in Russia in 2018.
"(Russian President Vladimir) Putin underestimates the strength of European unity and determination. It is never going to be business as normal again," said a senior EU diplomat Wednesday.